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On a certain sum of money, the simple interest for 2 years is Rs. 350 at the rate of 4% per annum. If it was invested at compound interest at the same rate for the same duration as before, how much more interest would be earned ?
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- Rs. 3.50
- Rs. 7
- Rs. 14
- Rs. 35
Correct Option: B
Time = 2 year , Rate = 4% , S.I. = Rs. 350
As we know that ,
| Principal = | |
| Time × Rate |
| Principal = | = Rs. 4375 | |
| 2 × 4 |
| Difference = | |
| 10000 |
| Difference = | = Rs. 7 | |
| 10000 |
